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for coming in. >> thanks for having me. >> raising the debt ceiling is non-negotiable. how is that going to go over with republicans? >> this is very much the first opening for ray on both sides. the president is non-negotiable, he wants to raise the debt ceiling. you have conservatives in congress saying we're not afraid to let the government shut down. they're starting on the opposite sides of the court and they'll move towards the center, if there's a deal. >> the president says he's willing to talk about more spending cuts as we discussed. not only the debt ceiling but also the sequestration, which is still on the table. that was pushed two months down the road and has to be dealt with but the president says he's not going to talk about that without discussions on more revenue, perhaps more tax hikes. is that on top of the ones with the fiscal cliff deal? >> when you borrow money and raise offsets. the president made it clear he wants that to come from revenue. the next thing they need to look at is spending cuts and congress is going to push for that. especially given the president

that lower the avalanche of spending. >> raising the debt ceiling and raising objections over former republican senator chuck hagel. the president's expected choice for defense secretary. our conversation with senators dick durbin and lindsey graham. then, learning the ropes with two freshmen, democratic senator democrat heidi heitkamp and republican senator richard hudson and plus can either party compromise and keep hard core supporters on board, neera tannen, stephen moore of the "wall street journal" and jackie calmes of the "new york times" and our own dana bash. you knows what happens when sis fuss rolls that boulder to the top of the hill, it rolls back down, a piece of greek mythology that brings to us the reality of the u.s. congress. it got a deal that raises taxes on the upper brackets and prevents for now huge spending cuts. it's moved on to the issue of avoiding a u.s. default. >> the president needs to show up early this time. >> republicans say they are done raising taxes. they want the president to agree to spending cuts in exchange for raising the amount of money the

for a full-blown fight over the debt ceiling in his first month on the job? pocket change. you heard about this idea. the trillion dollar coin to handle the debt ceiling. well, today we will tell you where it all started and whether or not it is really something president obama might use. they won't rule it out important some reason. and back to the future. the gun debate of 1994 had many lessons for the fight unfolding today. what can president obama learn from president clinton's success? good morning from washington. thursday, january 10, 2013. this is "the daily run-down." i'm chuck todd. let's get to my first read of the morning. this afternoon president obama will formally name his chief of staff, jack lew, to replace treasury secretary tim geithner. a sign the white house expects a big fight over the federal budget lew is the safe pick. he has been confirmed twice by the senate before. just in this administration. if confirmed in time, he can face his first test next month over the debt ceiling. lew is a walk among walks. described in one profile by the huffington post. quote, as ha

threats to breach the debt ceiling is very scary, it will be about life after default. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ >>> is the biggest national security threat facing the pentagon actually out of control spending? up next, why cutting the defense budget is job number one for the defense secretary, barney frank will be our next guest. >>> and later, the drama sounding the so-called trillion dollar coin. so, we all set? i've got two tickets to paradise! pack your bags, we'll leave tonight. uhh, it's next month, actually... eddie continues singing: to tickets to... paradiiiiiise! no four. remember? whoooa whooaa whooo! you know ronny, folks who save hundreds of dollars by switching to geico sure are happy. and how happy are they jimmy? happier than eddie money running a travel agency. get happy. get geico. fifteen minutes cou

about the upcoming debt ceiling battle. the president says no compromise, but reports say speaker boehner told fellow republicans, he plans to use the debt ceiling as leverage for subpoenaing cuts. who has the upper hand when it comes to raising the debt kre ceiling? >> most observers would say the leverage is on republicans' side here. what is interesting about this debt ceiling battle compared to the last one, have you high-ranking members taking positions pretty far away from the mainstream of what their party is saying. have you house minority leader come out at a news conference say the president should bypass congress entirely and invoke the 14th amendment to the constitution and raise the debt ceiling on his own and high-ranking republicans, john cornyn, also stated this week he thinks republicans should be prepared to push it to the point of a potential government shutdown in order to more spending cuts from the other side. one important thing to bear in mind, we have two months to get the deal done, the leeway is much less for them. the senate and the house will only be i

to raise the country's debt ceiling. shortly after lawmakers reached a down to the wire deal on taxes to pull the country back from the fiscal cliff earlier this week, the president tried to preempt the debt limit showdown by firing a warning shot at republicans. he reiterated that call yesterday. >> one thing i will not compromise over is whether congress should pay the tab for a bill already racked up. the congress refuses to give the united states the ability to pay its bills on time, the results for the global economy could be catastrophic. >> congress has vowed to use the upcoming votes to get more spending cuts to entitlement programs like medicare. some are threatening a government shutdown. in a moment, we'll talk to alan simpson and erskine bowles about where they see the fiscal cliff deal leaving the country. they say it falls short. but first, the man who brokered the deal with the white house on behalf of the republicans and no doubt will be a key figure in the battles ahead, the top republican in the senate, mitch mcconnell. he joins me now. leader mcconnell, happy new ye

, i'll explain more about why the republican threats to breach the debt ceiling is very scary, it will be about life after default. what are you doing? nothing. are you stealing our daughter's school supplies and taking them to work? no, i was just looking for my stapler and my... this thing. i save money by using fedex ground and buy my own supplies. that's a great idea. i'm going to go... we got clients in today. [ male announcer ] save on ground shipping at fedex office. fourneau. >>> is the biggest national security threat facing the pentagon actually out of control spending? up next, why cutting the defense budget is job number one for the defense secretary, barney frank will be our next guest. >>> and later, the drama sounding the so-called trillion dollar coin. ♪ ♪ ♪ we're lucky, it's not every day you find a companion as loyal as a subaru. love. it's what makes a subaru, a subaru. >>> the controversy over chuck hagel has been all about high-level strategy. our relationship with israel, our negotiations with iran, whether we should have gone into iraq at all. and

the sequester or the debt ceiling or the operation of government to try to engage the president to deal with this. but -- >> but you said that was a strategy, that's what you learned. i want to come back to the question. it's a hostage that's worth ransoming, the debt ceiling of the united states government. is that the strategy that you would ransom that here again to force the kind of spending cuts that you think are necessary? >> it's a shame that we have to use whatever leverage we have in congress to get the president to deal with the biggest problem confronting our future. and that's our excessive spending. >> but you're conceding that that may be the strategy this time? >> well, what the strategy ought to be is we ought to be doing something about the problem. >> well, i understand that. but there are additional problems as well that flow from that. as you know, after the debt ceiling was resolved in the summer of 2011, america's credit rating was downgraded. john ingler was the republican governor of michigan and said the following. he said this is to bloomberg news. it's a terr

fight over the debt ceiling? >> well, first, these last-minute deals are no way to run the government. i can tell you that. we know what the problem is. you're going to have al simpson and erskine bowles on. they have talked about this for a couple of years now. we have a spending problem. you know, we have a debt the size of our economy, which makes us look a lot like greece. this administration has driven spending as a percentage of our economy from 21% up to almost 25%. we've resolved the tax issue now. it's over. it's behind us. we were able to get permanent tax relief for 99% of american taxpayers. and for 500,000 small businesses. so that's behind us. what's left to be dealt with is the spending. and it's a shame that the president doesn't embrace the effort to reduce spending. none of us like using these situations like the sequester or the debt ceiling or the operation of government to try to engage the president to deal with this. but -- >> but you said that was a strategy, that's what you learned. i want to come back to the question. it's a hostage that's worth ransoming, the d

into the debt ceiling limit and whether you go past it. here is what the president said about that on tuesday. let's list. >> if congress refuses to give the united states government the ability to pay these bills on time, the consequences for the entire global economy would be catastrophic. far worse than the impact of a fiscal cliff. >> congressman jordan back in 2011 when we had the debate you advocated going past the debt ceiling deadline saying it wouldn't be such a bad thing. would you advocate that again this year? >> i advocated a solution and not a deal. it is no wonder the president doesn't want to debate this. if i had prosided over the four annual highest deficits in american history, $5 trillion increase in the national debt i probably wouldn't want to talk about the issue either. let's look at the facts. since the debt ceiling agreement passed 16 months ago the day after it passed we got a downgrade from s&p. a week after the market dropped 1300 points. the supercommittee which chris and so many members voted for fell apart like we all thought it would and the only scheduled cut

was tough stay tuned for bruising round twompt from automatic spending cuts to raising the debt ceiling and paying for uncle sam to at a open, the battle battle lines are how will that fight play out. we'll ask two key congressman. van hollen and jim jordan. he's's new man in town with a message that champions opportunities. will the party establishment listen. we'll get a fresh perspective from senator ted cruz. from spending to immigration and gun control debate, will the new congress get past the toxic partis an shepto get things done for voters. we'll ask the sunday panel to read the political teleaves all right now on "fox news sunday". hello again from fox news in washington. after side stepping the fiscal cliff, the country faces a triple threat of greater scale . at stake government spending cuts and full faith and credit of the united states. with bruises fresh from the last dust up early jabs are already flying. joining is democratic chris van hollen and republican jim jordan. senate minority leader said the revenue piece is done. the president wants more tax he needs to limit

. the president says he isn't going to have a debate with us over the debt ceiling. he also says he's not going to cut spending with along with the debt limit hike. citing a poll by david winston says that any increase in the nation's debt limit must be accompanied by spending cuts. texas senator john correspond anyo cornyn threatened a partial government shutdown. the coming deadlines will be the next flash points in our ongoing fight to bring fiscal sanity to washington. it may be necessary to shut down the government in order to secure the long-term fiscal well-being of our country, rather than plod along the path of greece, italy and spain. president obama needs to take note and put forth a plan immediately. and pat tume voiced the same sentiment in week earlier on "morning joe." >> our opportunity is on the debt ceiling. the president made it very clear. he doesn't want to have a discussion about it, because he knows this is where we have lev range. we republicans need to tolerate a temporary partial government shutdown which is what it could mean and insist we will get off the road to gre

unprecedented. there's no change in sight. this is the debt ceiling debate of july and august 2011 which was supposed to come to grips with spending and our debt. it was punted off until this january. what came out was another probably as a result of the next one. we will come out with everything deferred. we are not facing the problem. ultimately, it will destroy our economy. >> i disagree with both nina and charles. it was postponed. it was avoided. that's a good thing. yes, the candid get kicked down the road. they had to because of the sequestration that will be taking place. what was achieved is that the president the achieved his goal of increasing the tax rate on the wealthy. that was important. the loser clearly being speaker boehner. yet a bad beginning of the year. >> the voters send them across the washingtons and make sure that they get every benefit that the government has available to them. they some republicans to washington to make sure that they will not have to pay. both parties keeping promises. they will much such a single gray hair on that beautiful hair of social se

in which he talks about the upcoming fiscal fight over the debt ceiling and drawing a hard line with congress saying he's not going to negotiate with them and house speaker john boehner drawing a hard line as well saying he'll use the debt ceiling debate to try to cut spending. so it looks like we are gearing up for another big battle, craig. this vacation will not last very long. >> kristen welker with a whole lot of day left in hawaii. i expect you have plans as well. good luck, kristen. >> thanks, craig. >> out with the old and in with the new. we're not just talking about out with the old and in with the new. we're not just talking about the fights on the horizon that will include a few familiar faces and washington post ed o'keefe, good afternoon to you, gentlemen. >> gentlemen. >> ed, the end of 2012, all about the fiscal cliff. right now we're talking about the debt ceiling discussion ahead. how tough of a fight is president obama going to be coming home will to? >> oh, a very tough one because republicans now determined more than ever to get spending cuts as part of the

? >> okay, let's go from there to looking ahead to the debt ceiling debate, kristen. what is the his's strategy to get what it wants out of this deal without getting into another budget showdown? >> well, if you talk to white house officials they believe they have more leverage going into this battle in part because they got republicans to break on the issue of increasing taxes on wealthier americans, that's, of course, what president obama campaigned on and he got that as a part of the fiscal cliff deal. moving forward i think you can expect to see president obama hitting the road, taking his message on the road, traveling to different states and making the argument if the debt ceiling isn't increased, the economy will suffer. you hear him say he's not going to negotiate with republicans. what specifically does that mean, we'll have to wait and see because, of course, house speaker john boehner is also taking a very hard line. he has said that he's not going to negotiate with president obama in these one-on-one sessions that we've seen in the past budget battles and he believes he's

show" from new york. the republican propaganda effort on the debt ceiling ends here tonight. this is "the ed show." let's get to work. >> in a couple of months the president will ask us to raise the nation's debt limit. >> the debt limit fight has begun, and so has the deception on the right. >> no need for drama. and we don't want any. >> tonight, my breakdown of the republican strategy to hijack the economy, and how democrats plan to fight it. >> we cannot be about business as usual, and that's what my vote was. >> the 113th congress is sworn in, and the circus is already in full swing. richard wolffe on today's bizarre vote for speaker of the house and how the 113th congress could crash the economy. >>> plus, the sandy relief disgrace continues. >> your two senators packed this with pork. the speaker made the right decision. >> i'll talk to a business owner who can't survive until house republicans act quickly. >>> and the president has called bill o'reilly's bluff and raised his taxes. >> if barack obama begins taxing me more than 50%, which is very possible, i don't kno

. >> the conservative editorial page of "the wall street journal" thinks the debt ceiling threat is a bluff. they wrote today, "you can't take a hostage you aren't prepared to shoot." do you think republicans are willing to shoot the hostage in this negotiation? >> well, what i think is that the employers of many of our republican colleagues, wall street, and the big money interests know absolutely that if the united states for the first time in its history defaults, does not pay its debt, it could lead to an international financial crisis, which will be bad for wall street, which will be bad for big business. and i think they are telling the republicans not to go down that path. >> speaking of wall street, are you willing? i keep hearing that you're going to offer up a transaction tax that will generate several billion to shore up this social security fund. do you think you would get support on that? >> i think we get support from the american people. and i think more and more folks are looking at that as an option. it would do two things. it would bring in many hundreds of millions of dollars over a

shut downs and debt ceilings. vice president sebiden is meeti with the nra and senator feinstein wants to ban handguns the kudlow report begins right now. >> cnbc contributor jared bernstein. i can't think of a single reason why they have to put in such an unstring wi undistinguished person in such an important spot. >> i take issue with that. you have to take into consideration issues, but i will say when it comes to one of the most important jobs of the treasury secretary, which is managing the budget, you can't have a better guy than jack lu. you can talk a lot about it. >> that is where i disagree. this is not, hang on a second. i'm going to give jimmy a whack at this. this is not the director of the office of managing the budget. that is where i used to work. this is about financial matters. this is about guys who know what goes on at the world's financial capitol. this is about guys who used to look after the currency and about guys who are going to have to deal with republicans over the debt ceiling and according to every leader that i have talked to, he is poison to republicans

, debt ceiling cliff. your elected officials ready to push america over the edge of the cliff. >> i will not have another debate with this congress over whether or not they should pay the bills that they've already racked up through the laws that they passed. >> well, yes, you will, mr. president, and very soon. democrats and republicans are set to clash again over raising the u.s. debt ceiling. back in the old days, the u.s. had a snl where every time a bill involving money was passed, the treasury had to raise money for by issuing bonds. the debt ceiling law was given the u.s. treasury the flexibility to borrow money. it had nothing to do with spending control or debt control. it was a technicality. most functioning countries don't have any such thing because they understand that if the government spends the money. it has to pay the bills. republicans seem to think that the debt sealing is a good tool to limit how much the government spends, the current debt ceiling was hit on december 31st, but like last time, the u.s. treasury is using extraordinary measures to ghet get it throu

'm going to tell you why i think a debt ceiling and government shutdown, bad idea. i'm going to show you a better way. the "kudlow report" begins right now. . >>> first up, amid allegations of anti-semitism and antiisrael sentiments, president obama nonetheless nominated former republican senator chuck hagel for the position of secretary of defense. that today, also reportedly soft on iranian sanctions. so is there any truth to these charges? here to discuss eliot abrams, a senior fellow at the council on foreign relations. eliot, happy new year and as always, welcome back. are these charges -- is there merit to these charges? first of all, anti-semitism. >> look, i can't read his mind. i can only go by the public record. the public record suggests he's got a problem with jews, frankly. there's reports from the members of the tiny nebraska jewish community that they never had a politician in nebraska who was so indifferent, their word, indifferent to the community. who took no interest, who was completely nonresponsive to any requests they made. there's a beginning. then you have these q

and the fight under raising the debt ceiling underway, republican congressman john boehner was re-elected to a second term as speaker. house clerk karen haas gave the tally. >> total number of votes cast is 426 of which the honorable john a. boehner of the state of ohio has received 220. the honorable nancy pelosi of the state of california has received 192. >> eliot: while pelosi got solid support with five democrats voting against her a dozen conservative republicans either abstained or lined up against boehner casting votes instead or candidates including majority leader eric cantor of virginia and tea party firebrand allen west. perhaps nobody told them west lost his election. when pelosi handed boehner a symbolic people's gavel boehner resisted the temptation to use it on the rebels in his own caucus. he returned to his favorite topic, reducing the national debt. >> at $16 trillion and rising, our national debt is draining free enterprise and weakening. in our hearts, we know it is wrong to pass this debt on

isn't going to have a debate with us over the debt ceiling. he also says he's not going to cut spending along with the debt limit hike. and then citing a poll conducted by republican david winston, boehner said, 72% of americans agree any increase in the nation's debt limit must be accompanied by spending cuts and reforms of a greater amount. the debate is already under way. number two, texas senator john cornyn took that fighting spirit even further threatening a partial government shutdown. he said in an op-ed, the coming deadlines will be the next flash points in our ongoing fight to bring fiscal sanity to washington. it may be necessary to partially shut down the government in order to secure the long-term fiscal well-being of our country rather than plod along the path of greece, italy, and spain. president obama needs to take note of this reality and put forward a plan to avoid it immediately. finally, pennsylvania republican senator pat toomey voiced the same sentiment earlier this week on "morning joe." >> our opportunity here is on the debt ceiling. the president has m

with a conversation about politics and economics and debt ceilings and fiscal cliffs and sequestration with david leonhardt of the "new york times" and austan goolsbee, former chairman of the president's council of economic advisors. >> there's much less of a sense in obama that he can get the grand bargain. although he's still trying. he and boehner both are. i think he's much more cynical about what republicans will agree to and i think he's come to think that many of them won't do anything with him. >> rose: national security, politics, and the economy when we continue. captioning sponsored by rose communications from our studios in new york city, this is charlie rose. poop announced his picks for two of the most important national security positions earlier today. for secretary of defense he nominated former republican senator chuck hagel. he chose counterterrorism advisor john brennan to head the c.i.a.. >> chuck hagel is the leader that our troops deserve. he is an american patriot, he enlisted in the army and volunteered for vietnam. as the young private and then sergeant he served with ho

democratic leaders insist revenues will be needed. the deal also did not tackle the impending debt ceiling, a debate that will likely consume congress in the months ahead. joining me from washington, david leonhardt, he is the washington bureau chief of the "new york times." from chicago, austan goolsbee, a professor at the university of chicago booth school of business and previously chairman of the president's council of economic advisors. i'm pleased to have both of them back on this program. david, let me begin with you and tell me exactly where you think we are having that january 1 up to the last minute deal. what is the order of business for the executive branch and the legislative branch to do something to develop some sense of predictability and certainty and a road map for the future. >> well, we just missed a pretty substantial opportunity thief happen because i think the bigger deals that were on the table that president obama and speaker boehner were talking about would have removed some of these up coming deadlines, like the debt ceiling. and they didn't get one of those bigg

thing. we have to get through now the debt ceiling, so i don't think it's clear sailing by any means. i think you're going to see volatility, but look at the economic data here. i mean, the non-farm payroll numbers here were in line, but they are encouraging on the private sector job growth, encouraging on our hourly earnings, and i think even the ism services was quite encouraging, so the u.s. is actually on better footing, and i think we can handle all the tax implications and the spending cuts a little bit better, about trend line 2% gdp growth, nothing great, but certainly not like the recessionary fears of where we were a year ago, and then globally you've got china recovering in some of the other markets like brazil and india doing a little bit better. >> so it's all progress. we're not there yet. >> progress, yes. >> joe greco, spoke to you guys on the floor, and there's a group highly skeptical of this rally. they are not happy at all with what came out of washington, and there are plenty of you guys who are very positive like ralph. where do you stand right now? >> you know, i

no compromise on the debt ceiling. where is this all headed? >> round two of this new year, basically the same fiscal kind of fight. the republicans, which some people say the republicans lost this first round by allowing the tax rates to go up for the first time in a couple of decades on the wealthier americans. they're saying, look, this is our chance to sort of gain back some of what we might have lost and really make an impact on the spending cuts. they're saying we want to hold the president to the lineup as we go towards this debt ceiling. if the president wants to raise the debt ceiling, we want an equal dollar per dollar spending cut if we want to raise the debt ceiling. within the two months, if you see a fight over the debt ceiling and sequester, these automated spending cuts, they're mandatory right now. republicans are really going to hold the line. now it's going to be a question of who is willing to blink first or who doesn't want to blink first. i think it's going to go down to the wire, just like this last one did. >> rachel, a lot of what i talked about this weekend with democ

to a big start by taking the week off. >> not just the debt ceiling, but there is also the sequester. >> republicans are not going to play ball in the sequester. >> this is packed with responsibility. >> republicans are saying they have leverage. >> we have to use whatever leverage we have. >> what happens to the leverage? >> actually, misunderstanding the situation. >> a different set of nuts. >> i'll go back to my original question. >> i know what your question is. >> how far are you willing to take this strategy. >> would you rule out a government shutdown? >> i helped close the government twice. i think that is a dead loser. >> hopefully we don't get to that point. >> a place for politics. >> well, i got 98% of what i wanted. i'm pretty happy. >> the republican party losing streak continued today as a new poll shows that republicans also lost in the public perception of the fiscal cliff negotiations. "the was post" shows that 30% approve the way house speaker john boehner handled fiscal cliff negotiations, 56% don't approve, 53% approve the way president obama handled negotiation

. with the debt ceiling coming up, what impact will this have on the gop? joining me is septemberor from doin dine and wisconsin. >> thank you, uma. >> congressman, i know you voted for the bill and many colleagues are angry you supported it and say you abandoned the gop's core beliefings. did you read the bill before you voted for it? >> i sure did . that was part of the problem. it was over 500 . took time to absorb what was in it i made the determination of going forward. you can only negotiate with somebody who had something to do . that is it a tax and spend posiddings . how would they lose in a deal that gives them 45 -- $500 billion and no spending restraint. if i could fix taxes for nan percent of the americans it was the best deal to get. >> do you agree that you abandoned the core beliefs of the gop? >> no, it is it the other way around. taxes had gone up as of know judge 1st and no way ofing themm doup >> clayton: is it a republican or consebative deal to raise taxes. >> congresswoman. how bad is the device this time. >> we need to q. back and look at the whole picture that taxes were s

. with the fiscal cliff in the rear view mirror, raising the debt ceiling is washington's next big drama. we look at why its so important. >> susie: i'm susie gharib. that drama, could have a new cast member, we're learning the president will nominate jacob lew as his next treasury secretary. >> tom: and with its reputation already on the ropes, a.i.g., the big bailed-out insurer, decides against suing uncle sam. >> susie: that and more tonight on "n.b.r."! >> tom: there could soon be a new signature on the dollar bill, jacob "jack" lew is said to be the president's pick to replace treasury secretary timothy geithner. that nomination is expected tomorrow. should he be confirmed by the senate, one of lew's first challenges will be dealing with the rapidly approaching debt ceiling. darren gersh reports. >> reporter: assuming he wins senate confirmation, jacob "jack" lew will take over a treasury that is rapidly running out of cash. the federal government has already hit the debt ceiling. and the only way the government can pay its bills is by using accounting gimmicks to move money around. those tr

. this time over the nation's debt ceiling. >> fifthsyrian president bashar al-assad addressed his war-torn nation in a rare speech. he stood firm against global calls for him to step down. and proposed a peace process that would leave him in power. the obama administration quickly rejected it. more than 60-thousand people have reportedly been killed during a bloody civil war two years. searching for dozens of people who may be missing in wildfires in southeast tasmania. those wildfires have already destroyed more than a hundred homes. also been evacuated from the tasmania peninsula because the fires have blocked roads in and out of the rural communities. firefighters are having a tough time getting the flames under control because of the rough terrain. but they say they should gain the upper ground this week. >> president obama and the first family are back in washington tonight. after wrapping up their holiday vacation in hawaii. air force one touched down at joint base andrews in maryland earlier this morning. the president interrupted his vacation by flying back to washington to se

fiscal cliff hello debt ceiling. >> the fiscal cliff fight was ugly but will the debt ceiling struggle be eveninging uglier. >> hard to believe but this could get uglier. [ laughter ] the government is aetch perfecting the legal limit for how much kit borrow also known as the debt ceiling. republicans can demand that the president make spending cuts or we'll hit the debt ceiling and go through it. [ laughter ] or get crushed by it or you know what? we might have to make a skylight in it. sounds nice. it's pretty but they rarely get caulked properly and when it rains, it drips and ruins your sisal carpet. the republicans are clearly in a strong position but the president might have a trick up his sleeve. >> is there a magic bullet to solve the crisis? try a magic coin. some economists, legal scholars and a congressman are suggest a $1 trillion platinum coin could be minted and the government could use it to pay the debt, avoid default and preempt the debt ceiling crisis. >> stephen: we should have known that a coin was obama's solution to everything. it was right in his slogan. change.

's white house briefing with chick party who talked about the debt ceiling. he did not confirm news reports nomination for treasury secretary. earlier today from the white house. >> good afternoon, ladies and gentlemen. thank you for being here. i have an important personnel announcement to make. i am kidding. i will go to the ap. >> it has been widely reported that jack lew was the president's choice for commerce secretary. -- treasury secretary. [inaudible] >> let me say two things. i do not make cabinet level presences. the president does. i will not get ahead of the president. when he is ready to make an announcement about his next treasury secretary, he will make an announcement. secondly i would say jack lew has been and continues to be an extremely valuable adviser to the president. over the quarter of a century he has been an integral part of some of the most important budgetary, financial and fiscal agreements in washington. he was there when social security was reformed, he was there when tax reform passed at the table. in the 1980's. he was the cabinet level director of omb for p

deal. now we are preparing for the debt ceiling. do you expect the same contentiousness and loggerheads? >> i think it will be contentious. it should be. we continue to borrow and spend. we don't cut. we are headed down the road to financial destruction, as everybody knows. we do need to pay our debts, but we don't need to keep incurring that debt. that's the argument we should make. we have to come to financial sanity and we are not there yet. i believe at theep of the day, if the president will get involved -- if he will get involved, we could do some good things, but we have to cut spending, we have some type of a grand bargain? i don't know. but we are in better shape than we were on the tax stuff. >> you said you would like to see the president get involved. let's listen to your boss talk about that? >> the single biggest threat to america's future and that's our excessive spending. i would like for the president to lead. it is a shame that we have to drag him to the table. >> and also, the president recently remarked that he does not want to get into a fight over the debt ceiling.

if the president won't negotiate on the debt ceiling. and one of our guests says the next president of the united states will be black. and why one politician accused of a crime was stripped and beaten. we'll show it to you. let's go "outfront." >>> good friday evening, everyone. i'm erin burnette. "outfront" tonight, on the brink of battle. a threat today from a top republican to shut down the government if president obama refuses to negotiate over the debt ceiling. the second most powerful republican in the senate, minority whip john cornyn of texas wrote in an op-ed today, president obama needs to take note of this reality and put forward a plan to avoid it immediately. will those threats work? a senior democrat says if the republicans don't want to raise the debt ceiling, it will be on their shoulders. >> risking government shutdown, risking not raising the debt ceiling is playing with fire. >> playing with fire. douglas holtz-eakin is the former director of the congressional budget office. robert reich is a former u.s. labor secretary and author of a book that explains how we all feel these

, busting through the debt ceiling would be time. it is time to admit that america is a bit of a ludicrous banana republic. this is really bad options of managing our affairs. that is a grim conclusion, by the way, that means bond prices will go up, not as much as in default. but it is a grim conclusion that fits the evidence. of course, there is another option, republicans could just do what the congress of the united states is supposed to do. they could pay the bills it has racked up. and if it wants to pay fewer bills in the future and spend less money it can cut spending or raise taxes, which it writes the next budget. you know, the time you're supposed to do that. you know the way we have been doing it of the nation's history before john boehner and the republicans took over the house, during the entire rest of the nation's history when we never came close to purposely faulting on our deletes when we weren't a ludicrous banana republic? the last word for tonight. the ed show is up next. >> good evening and welcome to new york. the republicans are whining about the president's choice f

he go from here? has the battle over the debt ceiling and a possible government shutdown are all around the corner. but the gop has nothing but fiscal problems ahead of itself. nothing but problems. a few moments ago, new texas senator ted cruise told me that a government shutdown should be on the negotiating table that's what cruise said. >>> plus, we go out to san francisco, the middle east backed news network al jazeera is buying al gore's current tv for a whopping 500 million bucks. many believe al jazeera is nothing but pro-terrorist and anti-american and should not have a foot hold in the usa. >>> all right. first up tonight, high tension on capitol hill. house speaker john boehner barely held off a possible gop revolt over his speakership. republicans voted against boehner for speaker and five others abstained or voted present. washington editor for the national review robert costa was in the room. i think i had it wrong, nine nays, voted against him and one present. how tense, how close, what happened? >> larry, it was really tense. i was up there on the press gallery. i

to stop at some point. we're going to see the debt ceiling now present itself. are we going to see an ugly repetition was a debacle in 2011 that cost investors, the market cap number, but somewhere around a tri trillion dollars, we don't need any more of that. >> no, but at the end of the day there will be more fights, this is where we are as a nation. when you are 16.5 trillion in debt we'll have fights like this, i best compare it to a marriage that husband and wife go deep into debt, creditors call, and they start fighting as a couple. we see millions of couples in america break up because they are in too much debt, they fight about it the house and senate look a lot like america in the fighting we have about we understand we have too much debt, we understand we have too much spending but battle is where do you cutback. no single vote will fix this. lou: but if there is any more of the irresponsible nonsense over a debt ceiling, independence and democrats and many conservatives will be disenchanted with the republican party. i think you have to began kid and say, -- candid and say that

, on the next battle to come, whether to raise the next debt ceiling. >> we can't agree on the reforms, without lowering the avalanche of spending that is creating this debt in the first place. >> reporter: and there is another sign that old pattern of brinkmanship is back. john boehner told republicans behind closed doors he will insist on spending cuts. the president said he will not discuss it, but it is a sign that the battle lines are being drawn for this new congress, wolf? new the >> there is an area, jim you have been looking into, where there could be bipartisan and comprehensive immigration. a lot of them think they have to reach out to the hispanic community and show a little flexibility on this issue. >> reporter: that is right, we have seen communication from both the members of the house and senate that they need to get with the program you might say, when it comes to immigration reform. they just have to look at what happened in the last election, in terms of how hispanics voted overwhelmingly for president obama. but wolf, if we're getting back to that pattern of brinkmanship, e

will be an in-your-face term. i won't talk to you about the debt ceiling and the secretary of defense will get a lot of bipartisan concern. >> we have live pictures of air force one landing here at andrews air force base. the obama family is returning to washington. mrs. obama and the girls have been in hawaii a couple of weeks. the president's gone back and forth between d.c. and hawaii because of the fiscal cliff battle. you heard senator graham talking about chuck hagel, what appears to be the nominee for defense secretary. congress has two months to fix the debt ceiling before the u.s. may have to default on its bills. so the president comes back from a nice vacation in hawaii, he comes back to big issues that they have to tackle. sequestration, the debt ceiling, spenning. he is enjoying his last few minutes here on the plane, taxiing and he will head back to the white house with his family. >> jamie: molly, thank you. >> can washington come up with a plan to raise the debt limit without burying the count country in more debt? we have a former spokesperson for former governor jeb bush. hap

will be asked again to raise the debt ceiling. most republicans will oppose that acting for definite spending cuts before more borrowing. does the president care? >> the only viable option here is congress to fulfill -- that congress fulfills its responsibility and ensures that the united states of america pays its bills as it has always paid its bills through the its history. >> bill: just shut up and pay. all right? don't be asking for anything, just pay. it's mr. obama's way or the highway. again, he could use an executive order to ignore the debt ceiling and i will not be surprised if he does. so, what we have here is not a failure to communicate as they once said in the movie cool hand lou. but a president who believes he can do what he wants to do with little accountability. he has already signed executive order changing immigration rules. that was done in the middle of the night. few even know about it if this continues there will be a constitutional crisis in america. unfortunately we the people are slow to understand what's actually happening here. there is no collaboration going non

at the track record in the 2011 debt ceiling negotiations he was open to pretty significant changes involving social security, medicare, the medicare retirement age. a lot of reporting suggests he was in favor of a deal to raise the medicare retirement age. are we to read anything in to use him as the point man of the negotiations in the upcoming negotiations about where the white house might end up on those questions? >> well, i tell you what republicans are saying today on capitol hill and that is that they see this as a step in the wrong direction which for progressives is probably a step in the right direction if you could follow that because they think that every time they tried to float something on entitlements, jack lew shot it down and the president much more than open than jack lew to some of those changes so i think republicans think that this is a step in the wrong direction for them. but listen. there's definitely always concern from progressives. i think that's natural. and this administration has broadly been open in words, maybe not in deeds, republicans would say, to changes

in the gun control issue and probably in the debt ceiling issue, doesn't that smack of totalitarianism? i'm not going to go with the checks and balances that the founding fathers put into place. i'm going to sign my name and you're gonna do it. >> well, we still have checks and balances. we still have the judiciary. any executive order can be challenged in court. the truth is that the courts have generally upheld executive orders finding them perfectly consistent with the constitution. they have done it on important issues, too. president truman used executive order to desegregate the military when congress wouldn't act. we have along history of executive orders even on constitutional issues. i don't think they violate the separation of powers. >> bill: you do see that it will wind up in court and it will be a mess and particularly on the gun issue. now, how do you see it coming down? let's take the guns first. the house is not going to go along with the president's overall view. they may make a couple of minor tweaks here and there how do you think the president is going to handle it? >>

to president obama urging him to do whatever he can to sidestep congress and increase the debt ceiling. but he cannot legally or constitutionally do that. john boehner reacts by saying washington must stop spending money it doesn't have. >>> speaking of sequester spending cuts, defense department is gearing up, so is homeland security. and the tsa. did you get your paycheck today? notice something missing? the payroll tax holiday is over. will this middle class tax hike really damage the economy? "the kudlow report" begins right now. >>> first up tonight, a developing story. four democratic senators sent a letter to president obama late this afternoon. they want him to use any means necessary to raise the debt ceiling without republican house spending cuts. that's right. cnbc's eamon javers has the details. >> reporter: let me get right to exactly what that quartet of senators said. in their letter to president obama which was viewed widely as shoring up his left flank in the political debate over the debt ceiling. what they wrote was "we believe you must be willing to take any lawful steps to

debt ceiling deadline, more republicans come out in support of a government shutdown. the gop's misinformation campaign continues. john nichols joins me with that discussion. >>> and later, the white house has a tough road ahead on gun control. now the administration is getting pushed back from some democrats. i'll talk with val demings, former chief of police in orlando, florida. stay tuned. [ female announcer ] going to sleep may be easy, but when you wake up in the middle of the night it can be frustrating. it's hard to turn off and go back to sleep. intermezzo is the first and only prescription sleep aid approved for use as needed in the middle of the night when you can't get back to sleep. it's an effective sleep medicine you don't take before bedtime. take it in bed only when you need it and have at least four hours left for sleep. do not take intermezzo if you have had an allergic reaction to drugs containing zolpidem, such as ambien. allergic reactions such as shortness of breath or swelling of your tongue or throat may occur and may be fatal. intermezzo should not be

battle over the debt ceiling. here's how both sides are weighing in on the conversation. >> i believe we need to rates the debt cell but if we don't raise it with a plan to get out of debt, all of us should be fired. >> strong words and the fiscal cliff has come and gone. now lawmakers start a new session under pressure to avert another financial crisis, this time over raising the debt ceiling. if an agreement is not reached by late february or early march, the united states risks defaulting on its phenomenon r financial obligations. the argument will be how much congress will agree to cut spending. >> the bottom line is we can't continue down the path we're on of borrowing money to pay our debt. we have to have dollar for dollar cuts. >> key democrats and say the debt ceiling and the tax cuts are unrelated. >> not going to say i'm not going to pay my bills unless you stop buying stuff. so stop buying stuff so you don't have future bills but right now we have to pea the bell for what we incur. i you want to tie it to what we do next, fine. >> the big part of the budget is getting people

for him in washington a new tuesday well the g.o.p. over raising the debt ceiling. joining us now is wendall goler, hope you holding okay. talk to the president and what he is going to be greeted with. >> reporter: he a used his weekly address to warn republicans not to use the debate over raising the nation's debt ceiling to try and force government spending cuts but even as former budget director say that republicans are more likely to have more leverage. the problem is the president sees it threatening to not paying bills could raise the cost of borrowing money and a genuine u.s. government default could trigger a global recession. >> congress refuses to give the united states the ability to pay its bills on time, consequences could be catastrophic. last time coming threatened this course of action, our entire economy suffered for it. our families and businesses cannot afford that dangerous game again. >> reporter: congressional budget office passed a bill to avoid the fiscal cliff still leaves $900 billion a year in deficits. republicans say by raising taxes on the wealthy the

weeks before the next major battle over the debt ceiling republican lawmakers are making it clear they are ready to fight the president. let's bring in our national political correspondent on capitol hill with the latest. >> it seems old habits die hard. remember the moments yesterday as members of 113th congress were sworn in? never mind. after surviving a failed coo led by his own members john boehner wants to take the same fractured party into battle. in a closed door meeting of house republicans a source tells cnn boehner said he will demand budget cuts larger than any increase in the debt limit. boehner told the members the focus turns to spending that puts republicans and congress back on a collision course with the white house after the president insisted he will not negotiate over the debt ceiling. >> i will not have another debate with this congress over whether or not they should pay the bills that they have racked up through the laws that they passed. >> reporter: if the president won't come to the bargaining table one top republican says it may be necessary to partiall

to the debt ceiling debate. so early on in trade today, we will see more follow-through from the strong wednesday-thursday trade, but perhaps expect a little bit of profit-taking in the last hour ahead of the weekend press cycle. > > what are you seeing as far as volume, and did growth in china have anything to do with this latest rally? > > right, no, absolutely. first and foremost, china. the chinese trade data from wednesday night into thursday morning was exceptionally strong, exceeding analysts' expectations by 50%. it suggests or gives the hint that perhaps the global and domestic economies are both a little bit stronger than what some of the data is perhaps suggesting. that would be welcome news for federal reserve policymakers. your second point, volumes - volumes have been very strong at the start of the new year. even the s&p futures for example, yesterday traded over 1.6 million contracts in its heaviest volume day of the year, so, volumes are strong, and there is a lot of new money entering the market - 401(k)s, pension plans, whatever else - so look for volumes to remain el

of the debt ceiling and i guess by definition, your party, and stammerin and yammerin? >> let's get 16 of them and say goodbye to the debt. think what they could print aluminum coins and say they are worth a trillion dollars. we need to do something to do with run away deficit spending. >> neil: we never do. many argue that your party had a chance in the latest cliff deal and was to settle it? >> we have resolved the tax hikes. now, the issue is spending. i wish we could have. i wish we had a president that would have agreed there was a spending problem. he told the speaker he doesn't think there is a spending problem. last thing we need for treasury to mint a new coin made out of platinum that would weigh, 44 million pounds. i would sink the titanic. you know, this is the kind of things going on in d.c. that we have to draw attention to. >> neil: i hope cooler heads and calmer and less crazy heads will prevail. >> good to be with you. >> neil: invoking an amendment to seek racial equality will -- with debt piling up, pat gudell it's not a wonder that americans are not rising up. >> this is he

connell. mcconnell wouldn't take the debt ceiling off the table, but he wouldn't commit to doing it. and when you have boehner saying it's a better point of leverage with sequester, he's politically wrong about that. sequester is terrible, terrible program cuts. but it's a lot less horrible than the debt ceiling. so any time you're thinking that you have to bargain over that, you are bargain around that and the president can stand firmer on that than he could, i think, on the debt ceiling crisis. so i think his strategy of saying i'm not going to negotiate with you on that is paying off. >> now, jared, it was interesting to me when newt gingrich who did close government in the '90s, newt gingrich predicted that the republicans were in on this. watch this. >> everybody's now talking here comes the debt ceiling. i think that's frankly a dead loser. because in the end you know it's going to happen. the whole financial system is going to say this will be a gigantic problem. you can't be responsible. and they'll cave. >> when you have newt gingrich saying they'll cave. and newt gingrich did this,

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